Struggling Toshiba is giving up its TV business Photo: AFP

Toshiba sells TV business to China's Hisense

By Yoshikazu Tsuno

Struggling Japanese conglomerate Toshiba said Tuesday it has decided to sell its television business to China's Hisense Group as part of its efforts to restore its balance sheet.

Toshiba agreed with the Chinese group to sell 95 percent in shares of its unit Toshiba Visual Solutions (TVS) for about 12.9 billion yen ($114 million), it said in a statement.

"Toshiba has been considering structural reforms that will ... strengthen Toshiba's financial base," the firm said.

"It has become difficult for Toshiba itself to further invest its management resources and execute measures to strengthen the competitiveness" of the TV business, it said.

Accordingly, it determined that the best way to strengthen the business is "to transfer it to Hisense".

The announcement came days after the Tokyo-based firm said it logged a net loss of $436 million for the fiscal first half, as it moves to complete the multi-billion-dollar sale of its chip business.

After months of wrangling with competing bidders, Toshiba said in September it had formally signed an agreement to sell the chip unit for 2 trillion yen to a consortium led by U.S. investor Bain Capital, which included U.S. tech giants Apple and Dell as well as South Korean chipmaker SK Hynix.

The chip unit brought in around a quarter of Toshiba's total annual revenue and is the crown jewel in a vast range of businesses ranging from home appliances to nuclear reactors.

The deal is seen as crucial to the survival of the cash-strapped company, one of Japan's best-known firms.

Toshiba is on the ropes after the disastrous acquisition of U.S. nuclear energy firm Westinghouse, which racked up billions of dollars in losses before being placed in bankruptcy protection.

© 2017 AFP

©2017 GPlusMedia Inc.

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$114 million is pocket change in business.

The once epic brand is worthless.

3 ( +3 / -0 )

10-20 years too late.

-1 ( +0 / -1 )

Incredible. I’m watching my 8 years old Toshiba TV. They should’ve notice that people only care about size and price.

0 ( +1 / -1 )

Bad investments and hit you in the butt later on and Westinghouse was one such which investment.

2 ( +2 / -0 )

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